S&P: DiversiTech loans B+, CCC+

S&P said it assigned a B corporate credit rating to DiversiTech Holdings Inc.

The outlook is stable.

The agency also said it assigned a B+ rating to the company's proposed first-lien term loan and CCC+ rating to the company's proposed second-lien term loan.

The 2 recovery rating on the first-lien term loan indicates 70% to 90% expected default recovery.

The 6 recovery rating on the second-lien term loan indicates 0 to 10% expected efault recovery.

DiversiTech recently entered into a definitive agreement to be purchased by a company controlled by Permira Funds, who will partially fund the acquisition with a $325 million first-lien term loan and $120 million second-lien term loan.

The stable outlook reflects an expectation that revenues will continue to increase on a solid trajectory from both organic and acquisitive growth, S&P said.

The agency said it expects leverage to remain at higher than 5x over the next 12 months.

S&P also said it is cognizant that the company may undertake bolt-on acquisitions, although the size and timing of such transactions are not forecast.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.